Andhra Pradesh - Nellore   

Bankers accused of letting down tenant farmers

NELLORE: MLCs – Vitapu Bala Subramanyam and D.Rami Reddy – expressed concern over poor sanction of education loans and advances to lease farmers by the bankers in the district.

The MLCs, who attended the District Level Review Committee of Bankers (DLRC) were forced to wait for about one hour as the officials did not arrive on time. There was a poor turn out for the DLRC meeting as none of the MLAs from the 10 constituencies or the Minister attended the programme.

MLC Bala Subramanyam said the bank linkage to Self Help Groups (SHGs) was poor and the sanction of loans for students and tenant farmers is being neglected in Nellore district. Collector K. Ramgopal who chaired the meeting said the pressure on bankers for grant of education loans has come down in the past two years due to implementation of fee reimbursement scheme for students. Instructions were given to the bankers to issue loans to all the students who approach banks.

Lead District Manager (LDM) K. Anjaneyulu said the Reserve Bank of India (RBI) has directed the banks to sanction more education loans and help the poor students. The bankers disbursed education loans worth Rs.1.37 crore and bank managements should concentrate more on rural areas and see that students do not face problems due to poverty. Regarding loans to tenant farmers, the bankers were asked to grant loans to 200 fresh farmers including 25 lease farmers in each branch in the district.

When the MLCs questioned on whether there is any system to check the utilization of loans by SHGs and the income generation activity among the beneficiaries, the Collector said there was no such system and the district administration is planning to do follow up after providing loans. Earlier, the officials inaugurated the Potential Linked Credit Plan prepared by NABARD for the year 2010-11 for Rs.2,077.41 crore for the district.

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